How to Check Your Business Credit Score

Wondering how to check your business credit score? Check out our guide for everything you need to know about monitoring your business credit.

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Introduction

Your business credit score is an important factor that lenders and creditors consider when extendin credit or loans to your business. A strong business credit score demonstrates to lenders that your business is a responsible borrower and is more likely to repay debts on time. A good business credit score can also help you get better terms and rates on loans and lines of credit.

There are a few different ways to check your business credit score. You can purchase a report from a credit bureau, such as Dun & Bradstreet or Experian, or you can use a free online service, such as Nav or Credit Sesame.

When you check your business credit score, you will also see a list of the factors that make up your score. This list can help you identify areas where you can improve your creditworthiness. For example, if you see that your payment history is impacting your score, you may want to focus on making timely payments in the future.

It’s also a good idea to keep an eye on your personal credit score, as it can impact your business credit score. If you have a strong personal credit score, it may be easier to qualify for small-business loans and lines of credit.

What is a Business Credit Score?

Your business credit score is a key factor in determining your business’s financial health. Lenders and creditors use it to assess your risk as a borrower, and it can also affect your ability to get insurance, bonds, and other types of financing.

There are a few different credit scoring models for businesses, but the most common one is the Dun & Bradstreet PAYDEX® score. This score ranges from 1 to 100, with 100 being the best possible score. To get this score, Dun & Bradstreet looks at your payment history on invoices and loans over the past year.

Checking your business credit score is a good way to stay on top of your finances and make sure you are keeping up with your payments. You can check your business credit score for free on sites like Nav.com or CreditKarma.com.

How to Check Your Business Credit Score

There are a few different ways that you can check your business credit score. One way is to pull your own business credit report. Business credit reports will show you your payment history, credit utilization, and public records. You can also check your business credit score by using a service like Credit Karma or Nav.

Another way to check your business credit score is to use a service like Dun & Bradstreet or Experian. These services will provide you with a detailed report of your payment history, credit utilization, and public records. You can also get a free copy of your business credit report from each of the major business credit bureaus once every 12 months.

Why is Your Business Credit Score Important?

Your business credit score is important because it is one of the main factors that lenders will look at when considering you for a loan. A high credit score means you’re a low-risk borrower, which could lead to a lower interest rate on your loan. A low credit score could lead to a higher interest rate and could mean you won’t be approved for the loan at all.

Your business credit score is also important because it can affect your ability to get insurance, rent office or retail space, and buy inventory on terms. And, if you want to sell your business, a high business credit score can make it easier to find a buyer who is willing to pay top dollar.

Tips for Improving Your Business Credit Score

There are a few things you can do to improve your business credit score.

First, make sure you keep updated records of your business finances, including income and expenses. This will show potential creditors that you are keeping track of your finances and are aware of your spending.

Second, try to pay your bills on time. This shows creditors that you are responsible with your payments and are less likely to default on a loan.

Third, try to keep a good credit history by using credit responsibly and repaying debts in a timely manner. This will show potential creditors that you are a low-risk borrower and are more likely to repay a loan.

Fourth, try to diversify your sources of credit. This shows potential creditors that you are not overly reliant on one source of credit and that you have the ability to repay multiple debts.

Finally, try to avoid high-interest debt. This shows potential creditors that you are mindful of the interest rates you are paying and are not willing to pay excessive interest charges.

How to Use Your Business Credit Score

Your business credit score is like your personal credit score, but for businesses. It is a number that represents your business’s creditworthiness, and it’s important to know what yours is so you can get an idea of ​​how likely you are to be approved for loans, lines of credit, and other types of financing.

There are a few different ways to check your business credit score. One way is to use a service like Nav, which offers free business credit scores. Another option is to check your score with one of the three major business credit reporting agencies: Experian, Equifax, or Dun & Bradstreet.

Once you know your score, you can start working on ways to improve it. Some things that will help improve your score include paying your bills on time, maintaining a good credit history, and keeping a low balance on your lines of credit.

What to Do if Your Business Credit Score is Low

If you find that your business credit score is low, there are a few things you can do to improve it. First, make sure that all the information on your credit report is accurate. If there are any errors, dispute them with the credit bureau. Secondly, try to pay down any outstanding debts you may have. This will show creditors that you are serious about repayments and improve your credit score over time. Finally, make sure to keep updated financial records for your business. This will show creditors that you are organized and responsible with your finances, both of which are important factors in determining your business credit score.

FAQs about Business Credit Scores

Where can I get my business credit score?

There are a few places you can get your business credit score. One option is to get it from a credit reporting agency, like Experian or Dun & Bradstat. Another option is to use a service like Nav, which offers free business credit scores. You can also get your score from sites like Scoreboard and CreditSignal.

What factors into my business credit score?

Your business credit score is determined by a number of factors, including your payment history, the types of credit you have (revolving or installment), the amount of debt you carry, the length of your credit history, and more.

What is a good business credit score?

There’s no one-size-fits-all answer to this question, as the definition of a “good” score depends on your needs and goals. However, in general, a score of 700 or above is considered good, while a score of 800 or above is considered excellent.

Resources for Further Reading

There are a number of resources available if you want to learn more about business credit scores. Here are a few of our favorites:

-The Business Credit Score Guide from Nav.com: This comprehensive guide covers everything from the basics of business credit scores to how to improve your score.

-The Small Business Administration’s Credit Score Resource Page: The SBA offers a wealth of information on business credit scores, including articles, tips, and FAQs.

-CreditScoreResource.com: This website offers a variety of articles on business credit scores, including how to interpret your score and what factors influence it.

Conclusion

There are a number of ways to check your business credit score. The most important thing is to make sure you are using a reputable source that uses the latest data. There are a number of websites that offer free business credit scores, but it’s important to remember that these scores are often less accurate than those from paid services.

If you want the most accurate picture of your business credit score, you can purchase a report from a business credit reporting agency. These agencies use different methods to calculate scores, so it’s important to look at multiple reports before making any decisions.

Once you have your business credit score, you can start working on improving it. Paying your bills on time and maintaining a good credit history are the best ways to improve your score. If you have negative items on your report, you can try to negotiate with the creditors to have them removed.

If you have a good business credit score, you’ll have an easier time getting loans and lines of credit from lenders. A good score can also help you get better terms on leases and insurance rates.

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